UNISON will today argue that the statutory national minimum wage should be increased to £6 an hour by October 2004.
In its oral evidence to the Low Pay Commission, which recommends the NMW rate, the union will back up its arguments that the rate needs to rise if it is to assist in eliminating poverty. And it will point out that many employers continue to evade minimum wage regulations or claw back increases from low paid workers.
The union wants an automatic formula introduced to increase the NMW each year, abolition of the youth rate and protection extended to 16 and 17 year olds.
UNISON Assistant General Secretary Bob Abberley, said:
ÒThe minimum wage is at a critical point. Unless it is increased regularly and substantially, it will lose its value and more and more workers will have to rely on state benefits to make ends meet. We need to have a proper living wage which would save the Government and the taxpayer billions subsidising low-paying employers.Ó
The national minimum wage is now £4.20 an hour and £3.70 an hour for under-22s. The Inland Revenue Enforcement Agency recovered £5.1m in arrears for low paid workers in 2001/02, up from £3m and £1.2m in 2000/01 and 1999/00.
The union is also calling for:
. Wider proactive enforcement powers for the Enforcement Agency
. The IR should focus on enforcement in low-paying sectors, such as care homes, and for contract and agency staff
. In addition to annual up-rating, there should be reviews every two years by the LPC to allow it to increase the NMW beyond the formula
. Government should adopt a policy to ensure that workers achieve a living wage through work without reliance on state benefits
. Government should commission research to discover the minimum income standards needed by adults and children to live without experiencing poverty.